May marked the largest year-over-year (YoY) decline in domestic tax paid estimates so far this year, decreasing -7.7%, to 13.3 million barrels, according to the Beer Institute (BI). 

The BI’s monthly report uses numbers from the Alcohol and Tobacco Tax and Trade Bureau (TTB):

• May’s decline was nearly double April’s -4% YoY decline;
• Domestic tax paids have declined YoY 4 of the 5 months reported by the BI so far in 2023, with the exception of February (+1% YoY);
• Year-to-date through May, domestic tax paids are down -4.4%, to just over 62.86 million barrels, a decrease of nearly 3 million barrels versus the same five-month period in 2022. 

As a reminder, these numbers are estimates and could change slightly as more data comes in. 

BI VP of research Danelle Kosmal also shared data on imported beer shipments for May, including the Cinco de Mayo holiday:

• Imported beer shipments increased +5.2% YoY in May, to 3.7 million barrels;
• Mexican imported beer was “nearly the sole driver of growth” for the segment, with an additional 350,000 barrels in the month versus May 2022, a +11.9% increase YoY;
• The positive report follows a -11% YoY decline in April, driven by Mexican imports (-9.2% YoY).

The rollercoaster for Mexican and total imports began in September 2022. Because of this, a rolling 12-month view of Mexican imports – +2% versus the previous 12 month period – is a “more accurate view” of trends, Kosmal wrote. 

Insiders can read the full story here.

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Black-owned Funkytown Brewery has been named the winner of the 12th annual Samuel Adams Brewing the American Dream Brewing & Business Experienceship. 

Through the experienceship, the Chicago-based brewery has won:

• “Unparalleled access to brewing and business resources from experts,” including Boston Beer founder Jim Koch; 
• An invite to the Samuel Adams Boston brewery to collaborate on a specialty beer, which will be served at their respective taprooms in Boston and Chicago;
• Tickets to the Brewers Association’s Great American Beer Festival in Denver, Colorado.

Funkytown beat out five other finalists at the Creating Dreams Beer Bash June 23 in New York City. The company was represented by co-founders Rich Bloomfield, Zach Day and Greg Williams.

From Koch, in a press release:

"Not only was their signature Hip-Hops and R&Brew a standout among voters at the Crafting Dreams Beer Bash, but their mission of expanding the craft beer community to underserved groups really resonated with us. When I started Samuel Adams, educating drinkers was key, and the dedication Rich, Zach and Greg show in sharing their knowledge with all is a reminder of the passion that will always keep the movement alive."

Insiders can read the full story here.

Funkytown and its founders are no strangers to winning awards. The brewery won Brewbound Live’s 13th annual Pitch Slam Competition in 2021. And last fall, Day was named one of the winners of the Michael James Jackson Foundation’s Sir Geoff Palmer Award for Brewing. 

Rewatch Funkytown’s Brewbound Live Pitch Slam final round here. The trio also joined the Brewbound Podcast in April 2022 to discuss expanding craft communities.

Bloomfield also returned to the Brewbound Live stage in 2022 to discuss the importance of crafting a strong brand identity, chatting with Talea Beer Co. co-founder LeAnn Darland and Shojo Beer Co. co-owner Haidar Hachem. Rewatch that panel here.

New Jersey Gov. Phil Murphy continues to delay signing a bill rolling back restrictions on breweries and taprooms, asking for more “board-based liquor license reform” to be included, KYW Newsradio reported. 

The state’s Legislature unanimously passed the bill last week, which removes special license conditions passed in 2018, including on-premise event limitations and food vendor restrictions. 

In the KYW Newsradio report, New Jersey Brewers Guild executive director Eric Orlando described breweries as “hostages” in the situation, as Murphy allegedly won’t sign the bill anytime soon due to it not “falling within his timeline.” 

To help breweries, the state’s Division of Alcoholic Beverage Control (ABC) has signed a temporary hold on restrictions that pauses enforcement of the special conditions while new legislation is still pending.

Tree House Brewing is now serving beer in Connecticut, more than four years after buying the plot of land that is now the Tree House Farm and Fermentory. 

Tree House purchased the $1.6 million farm in Woodstock, Connecticut, in early 2019. Since then, the company has added a fruit tree orchard, hop fields, chicken flock, produce program and more to the land.

The location’s new draft beer program, announced Friday on social media, joins an existing menu of hard cider offerings. The first two beer offerings are a pale ale with Peacharine, Citra and Riwaka hops and a pale ale with Simcoe and Citra hops.

From the brewery:

“Our farm is core to our operating ethos of making everything that we can from scratch, and personally attending to the variables that result in a distinctive and native outcome for our beverages we care so deeply about. This is very real, very hard work, and the team responsible for taking care of the farm deserves our congratulations today."

Stone Brewing has signed a five-year licensing deal with coffee co-packer and tech firm NuZee that will see the San Diego craft beer brand intellectual property appear on various specialty coffee products. 

The exclusive deal gives NuZee the rights to co-manufacture and distribute Stone coffee products using top brands Arrogant Bastard, Stone Buenaveza Salt & Lime Lager and Xocoveza nationwide in natural and traditional grocery stores and convenience stores, as well as office coffee and hotel brokers and distributors. 

NuZee also plans to sell the offerings direct-to-consumer to craft beer drinkers via StoneRoasting.com. Pre-orders will begin in 20 days.

Stone branded products will include:

• Proprietary single-serve DRIPKIT pour-overs; 
• Single-serve brew bags;
• Whole bean 12 oz. coffee bags;
• Compostable capsules.

Product attributes will mirror their beer counterparts, with Arrogant Bastard being more bitter, Buenaveza featuring beans sourced from Mexico and Xocoveza brewed with Mexican hot chocolate.

The coffee is expected to be available in late summer.

Brewbound’s next installment of Brew Talks takes place Wednesday afternoon live in Boston from the Samuel Adams brewery in Jamaica Plain. Get your tickets today.

Conversations will touch on the state of the industry, growth opportunities, what’s next for the hazy IPA style and the status of Massachusetts’ craft beer scene. Featured guests include:

• Sam Calagione, Dogfish Head;
• Kristen Burke, Burke Distributing;
• Andrea Starr, Total Wine & More;
• Dave Williams, Bump Williams Consulting;
• Dino Funari, Vitamin Sea;
• Naveen Pawar, Mighty Squirrel;
• Kimberly Golinski, Wormtown Brewery;
• Megan Parisi, Samuel Adams Boston taproom; 
• Adam Romanow, Castle Island.

Some of the proceeds will go to the Massachusetts Brewers Guild. If you can’t make it to Boston, check out a live feed starting at 3 p.m. ET.

Also this week, look out for a fresh Brewbound Podcast a bit earlier than usual as we converge on Boston.

With a shortened week, here are a few of the stories you might have missed while OOO.

• Who is the craft beer drinker in 2023? Zoe recaps the Brewers Association and Harris Poll’s latest survey on the Brewbound Podcast. Not an audiophile? Read the report;
• Firestone Walker plucked Tony Amaral from Lagunitas to lead its sales team;
• JuneShine’s founders discuss growing up, building a canned cocktail business and why variety packs will spice up their hard kombucha biz;
• Layoffs hit Bang, following a proposed sale to Monster;
• Father’s Day wasn’t too shabby for bars and restaurants, per CGA.